Fuel prices to remain unchanged: Radebe

Posted September 04, 2018

Petrol prices were increased to Rs 86.72, Rs 82.22 and Rs 82.41 per litre in Mumbai, Kolkata and Chennai respectively on Tuesday.

As petrol and diesel rates continued to soar on Monday after reaching a record high a day earlier, school bus operators indicated there could be a hike in bus fees from the second semester in October.

Since August 16, petrol prices have risen by over Rs 2 per litre. Petrol price in Delhi rose to a record Rs 79.31 per litre and diesel climbed to a fresh high of Rs 71.34, according to price notification of state-owned fuel retailers. This came at a time when India's crude oil imports from Iran had increased by 52 percent in June 2018.

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The department said the sustained hikes in fuel prices over the past few months have placed a strain on consumers. Diesel prices on the other hand have risen by Rs 2.56 a litre during this period.

"I would like to mention two points, and both these subjects are external".

Also, crude oil has gained United States dollars 7 a barrel in a fortnight, driven by fears that the U.S. sanctions on Iran will likely contract supplies. Due to sanctions on Tehran from the US, India had to reduce its imports from Iran, subsequently reducing the total fuel availability in the country. Rising fuel prices may also compel travel agents to increase rates by 10% for private cars/buses hired for picnics and weddings, sources said. There is a pressure on oil prices due to decrease in production.

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The price build-up of petrol in Delhi includes excise duty of ₹19.48, dealer commission of ₹3.63, and Value-Added Tax of ₹16.83 (including Value-Added Tax on dealer commission). "Secondly, global currencies have weakened against the United States dollar", Pradhan had said in Surat.

The fuel prices have been on fire since the beginning of August due to rising crude oil prices and low value of rupee against the USA dollar.

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